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Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is Scorpio Bulkers Inc. SALT which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in SALT.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 3 estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from a loss of 10 cents a share a month ago to its current level of a loss of 22 cents.
Also, for the current quarter Scorpio Bulkers has seen 3 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 7 cents a share from a loss of 4 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.1% in the past month.
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.
If you are still interested in the Industrial sector, you may instead consider some better-ranked stocks including China COSCO Holdings Company Limited (CICOY), Nordic American Tankers Limited NAT and Delta Air Lines Inc. DAL. All these stocks carry a Zacks Rank #2 (Buy) and may be better selections at this time.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
One such stock that you may want to consider dropping is Scorpio Bulkers Inc. SALT which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in SALT.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 3 estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from a loss of 10 cents a share a month ago to its current level of a loss of 22 cents.
Also, for the current quarter Scorpio Bulkers has seen 3 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 7 cents a share from a loss of 4 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.1% in the past month.
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.
If you are still interested in the Industrial sector, you may instead consider some better-ranked stocks including China COSCO Holdings Company Limited (CICOY), Nordic American Tankers Limited NAT and Delta Air Lines Inc. DAL. All these stocks carry a Zacks Rank #2 (Buy) and may be better selections at this time.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
DELTA AIR LINES DAL: Free Stock Analysis Report
NORDIC AMERICAN NAT: Free Stock Analysis Report
SCORPIO BULKERS SALT: Free Stock Analysis Report
To read this article on Zacks.com click here.
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